New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Dow Incorporated Retirees and Workers Face Rising Health Care Costs: What to Know for 2026

'Dow Incorporated employees anticipating rising health care expenses should take a proactive approach by reviewing their income plans and health care budgets now, as thoughtful preparation can help reduce uncertainty during subsidy transitions.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Dow Incorporated employees facing potential changes to ACA subsidies should revisit their retirement income and health care strategies now, as early planning can help them stay adaptable amid evolving costs.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How ACA subsidies expiring in 2025 could affect health care costs for Dow Incorporated employees and retirees.
Why 2026 health insurance premiums may increase dramatically for pre-Medicare retirees.
What steps individuals can take now to prepare and manage future health care expenses.

The ACA Shockwave: What Dow Incorporated Employees, Families, and Retirees May Expect from Increasing Health Insurance Costs

Each fall, millions of Americans, including those transitioning from Dow Incorporated, prepare for open enrollment—the period when health insurance options can be reviewed and selected. In most states, open enrollment for Affordable Care Act (ACA) marketplace plans begins on November 1.

Final elections must be submitted by December 15, 2025 for coverage beginning January 1, 2026. Coverage will start on February 1 for those who enroll or make changes between December 16 and January 16. Early enrollees still have the option to adjust plans any time before the enrollment window closes.

What Is the Main Concern for 2026?

Enhanced premium tax credits, which began in 2021 and are scheduled through 2025, currently lower what households pay for ACA coverage. If these enhanced subsidies expire on December 31, 2025, many Dow Incorporated retirees using ACA coverage before Medicare eligibility could face significantly higher premiums.

According to research from KFF, average net premiums—what individuals pay after subsidies—could rise by roughly 114% in 2026 if current subsidies are not renewed. ¹

Of the 24.3 million Americans expected to enroll in ACA marketplace plans for 2025, about 22 million qualify for premium subsidies. ²

Analysts caution about a potential “coverage cliff,” where individuals drop health care plans due to affordability concerns. The Urban Institute notes that millions could lose insurance coverage if current subsidy enhancements end. ³

How This May Impact Households and Retirees

Financial professionals report rising concern among retirees, small business owners, and individuals who rely on ACA coverage before turning 65. Higher premiums may lead to adjustments in retirement timing, withdrawal strategies, or monthly spending.

Even those not enrolled in ACA plans could be affected. If healthier individuals leave the marketplace due to cost increases, the remaining pool becomes older and less healthy, which may lead to higher premiums for others.

Why Timing Matters

The ACA enrollment period runs from November 1 to January 15. If Congress extends subsidies, individuals can select a plan based on available data and adjust their selection before December 15. Policyholders still retain the ability to make changes any time before the enrollment window closes.

Why Retirees Could Be Most Vulnerable

Dow Incorporated retirees in their early 60s often rely on ACA plans until they reach Medicare eligibility at age 65. Without extended subsidies, these retirees may need to revise budgets, modify withdrawal plans, or consider part-time employment to maintain coverage.

What You Can Do Right Now

Stay Updated Through Reliable Sources
Follow updates from HealthCare.gov and KFF.

Review Budget Scenarios
Compare premium costs with and without subsidies to understand the potential effect on monthly expenses.

Evaluate Your Health Care Strategy
Make sure your medical, dental, and prescription benefits work together effectively.

Maintain Coverage
Unexpected medical expenses can be difficult to manage without at least basic health insurance.

Plan Tax and Withdrawal Strategies Carefully
Because ACA subsidies are based on adjusted gross income, retirees may continue to qualify by using approaches such as Roth conversions or structured IRA withdrawals.

Support from The Retirement Group

The Retirement Group works with current and former Dow Incorporated employees to review how health care expenses may relate to pension choices, income distribution, tax planning, and Social Security. For more information, call (800) 900-5867.

Looking Ahead

Policies and markets may shift, even if subsidies are not extended. Reviewing health care costs annually and remaining flexible may help retirees adapt to future changes.

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Articles you may find interesting:

Sources:

1. Cox, Cynthia, Karen Pollitz, and Justin Lo. ACA Marketplace Premium Payments Would More than Double on Average Next Year If Enhanced Premium Tax Credits Expire . KFF, 30 Sept. 2025.
2. yahoo!news. ' Millions could go without health care coverage in 2026 ,' by Karissa Waddick and Stephanie Innes. 19 Nov. 2025.
- 3. Buettgens, Matthew, Clare Pan, and Christine Monahan. 4.8 Million People Will Lose Coverage in 2026 if Enhanced Premium Tax Credits Expire . Urban Institute, Sept. 2025.
  - Other Resources:
  - 1. Centers for Medicare & Medicaid Services. Health Insurance Exchanges 2025 Open Enrollment Report. U.S. Department of Health & Human Services, 2025.
    - 2. Fernandez, Bernadette. Enhanced Premium Tax Credit Expiration: Frequently Asked Questions. Congressional Research Service, 24 Sept. 2025.
    - 3. Ku, Leighton, et al. Expiring ACA Premium Tax Credits Could Lead to Nearly 340,000 Jobs Lost Across the U.S. in 2026. The Commonwealth Fund, 16 Oct. 2025.

How does The Dow Chemical Companyâ€™s pension plan structure impact an employee's retirement benefits when considering different retirement ages? The Dow Chemical Company offers various options in its pension plan, and understanding these can significantly affect financial planning for retirement. An employee must weigh the benefits of retiring earlier with potentially lower monthly payments against the advantages of working longer and how this aligns with personal retirement goals and expectations.

The Dow Chemical Company’s pension plan and retirement ages: The Dow Chemical Company’s pension plan structure impacts employees' retirement benefits based on their retirement age. Retiring earlier results in lower monthly payments due to reduced service time and potential early commencement penalties, while working longer allows for more service accrual and higher monthly benefits. Employees must evaluate how these factors align with personal retirement goals, as choosing to retire early might not provide as much financial security as delaying retirement(The Dow Chemical Compan…).

What are the implications of the 20% mandatory withholding tax on lump-sum distributions from The Dow Chemical Company's pension plan, and how does the option to roll over affect an employeeâ€™s tax situation? Employees taking lump-sum distributions need to be cautious about this withholding rule as it can impact their immediate financial needs. Additionally, the rollover option provides a strategy to defer taxes, which can be crucial for long-term financial health. Employees should consider how to best utilize these rules in their personal financial planning.

20% mandatory withholding tax on lump-sum distributions: Lump-sum distributions from The Dow Chemical Company’s pension plan are subject to a 20% mandatory withholding tax if not directly rolled over into another qualified retirement plan. This tax can significantly impact an employee's immediate finances. However, opting to roll over the lump sum to a qualified plan defers taxation until funds are withdrawn, allowing employees to manage their tax liabilities better while continuing to grow their retirement savings(The Dow Chemical Compan…).

How does The Dow Chemical Company ensure that employees understand their eligibility for retirement benefits based on various service and age criteria? Eligibility considerations based on service years and age can significantly influence the retirement timeline for employees. Moreover, itâ€™s essential for employees to be well-informed about these factors to make educated decisions pertaining to their retirement and whether adjustments to their career plans are needed for maximizing benefits.

Eligibility for retirement benefits: The Dow Chemical Company outlines eligibility for pension benefits based on a combination of service years and age. Typically, employees become vested after three years of service or upon reaching age 65 while still employed. The company ensures that employees are informed about these eligibility criteria through various resources, such as the Dow Benefits Service Center, enabling them to make informed retirement decisions(The Dow Chemical Compan…).

In what ways can employees of The Dow Chemical Company appeal decisions regarding their pension benefits, and what processes are in place to facilitate these appeals? The appeal process is critical for employees who might feel that their benefits have not been administered correctly. Understanding the correct procedures and having access to the right resources can empower employees to effectively advocate for themselves in the face of administrative decisions.

Appealing pension benefit decisions: If employees believe there has been an error in the administration of their pension benefits, The Dow Chemical Company provides a formal appeal process. Employees can file a claim, and if denied, they have the right to appeal the decision. The Retirement Board oversees these appeals, and employees must follow the outlined procedures for their appeal to be considered(The Dow Chemical Compan…).

What strategies can employees of The Dow Chemical Company employ to maximize their pension benefits while transitioning to retirement? Employees must navigate complexities such as contribution limits, benefit formulas, and personal retirement savings. A strategic approach, which includes understanding the timing of retirement and how it interacts with pension claims, can lead to more favorable financial outcomes in their retirement years.

Maximizing pension benefits: Employees at The Dow Chemical Company can maximize their pension benefits by carefully planning their retirement timing. Key strategies include working longer to accrue more service years, reviewing contribution limits, and understanding the benefit formula used. Aligning personal savings and pension claims with the optimal retirement age can result in more favorable financial outcomes(The Dow Chemical Compan…).

How can retirees from The Dow Chemical Company navigate survivor benefits, and what are the eligibility criteria for spouses or domestic partners? Survivor benefits are an essential aspect of retirement planning, especially for employees concerned about providing for their loved ones after death. Itâ€™s vital for employees to understand both eligibility and what benefits their partners might receive, fostering peace of mind during retirement planning endeavors.

Survivor benefits for retirees: Retirees from The Dow Chemical Company can opt for survivor benefits to provide financial security for their spouses or domestic partners. Eligibility for these benefits depends on the plan's structure, and employees should understand the options available to ensure their loved ones are covered after their death. These benefits include continued monthly payments or lump-sum options depending on the election made at retirement(The Dow Chemical Compan…).

How does The Dow Chemical Companyâ€™s defined benefit pension plan differ from other retirement plans, and what should employees know when comparing their options? Employees need to understand the distinctions between defined benefit plans and other types such as defined contribution plans for effective retirement planning. This understanding will help them better appreciate the benefits and risks associated with their choices and aid with decision-making processes.

Comparing defined benefit pension plan: The Dow Chemical Company offers a defined benefit pension plan, which differs from defined contribution plans like 401(k)s. In a defined benefit plan, the company guarantees a specific monthly benefit upon retirement, typically based on years of service and salary, whereas defined contribution plans depend on employee contributions and investment performance(The Dow Chemical Compan…).

What resources does The Dow Chemical Company provide to employees seeking detailed information about their retirement options, and how can they effectively utilize these? Accessing the right resources can bridge knowledge gaps regarding pension plans. Employees should know about dedicated pathways to assistance, such as benefit service centers and consultation avenues, to fully leverage their benefits package.

Resources for retirement information: The Dow Chemical Company provides several resources for employees to access detailed information about their retirement options. The Dow Benefits Service Center and My HR Connection are key tools where employees can request pension estimates, understand payment options, and clarify eligibility criteria. These resources help employees make informed decisions regarding their retirement planning(The Dow Chemical Compan…).

With changes in IRS rules becoming increasingly relevant, how do employees of The Dow Chemical Company stay informed about updates that may impact their retirement savings? Employees need to be active participants in their retirement planning by staying abreast of legal and regulatory changes that can influence their financial strategies. Having a clear understanding of these regulations can help ensure compliance while maximizing possible financial benefits under updated laws.

Staying informed about IRS rules: Employees of The Dow Chemical Company must stay informed about IRS rules that may affect their retirement savings. Changes in tax laws, contribution limits, or distribution rules can significantly impact financial planning. The company provides updates and resources to ensure employees are aware of relevant regulatory changes that might affect their retirement strategies(The Dow Chemical Compan…).

How can employees of The Dow Chemical Company reach the benefits service center for additional inquiries regarding their pension plan, and what information should they prepare beforehand? Knowing how to contact the benefits service center is crucial for employees seeking clarity on their pension plan benefits. Preparing relevant information ahead of time can streamline the process, allowing for a more productive engagement with benefits specialists and ensuring that employees receive precise guidance tailored to their situations.

Contacting the benefits service center: Employees seeking clarification about their pension benefits can reach the Dow Benefits Service Center via phone or online through the Message Center. It is recommended to have personal identification and details of the pension plan ready to streamline the inquiry process. Proper preparation ensures a productive conversation with benefits specialists(The Dow Chemical Compan…).

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For more information you can reach the plan administrator for Dow Incorporated at 1919 torrance blvd Torrance, CA 90501; or by calling them at 900-999-1009.